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. Last Updated: 07/27/2016

Kiev Plans Energy Sell-Offs




KIEV -- Ukraine announced a series of sell-offs in state energy and power firms Wednesday. The government will sell stakes in AT Kyivoblenergo, AT Chernihivoblenergo and AT Lisichansknaftoprodukt.


The State Property Fund said it will sell a 25 percent stake in energy transmission company AT Kyivoblenergo on June 11 to the highest bidder.


The state privatization agency said the stake is composed of 1,301,094 shares with a face value of 10.00 hryvnias ($5) each. The stake's starting price is 25.5 million hryvnias.


The winner -- who will also be given the right to sign an agreement to gain management control of the government's stake of 51 percent -- would have to pay 8.8 million hryvnias of the company's debts within 60 days of winning the tender and invest 17.5 million in three years to upgrade power lines and maintain the work force.


The fund said the starting price for 35 percent stake in Chernihivoblenergo, comprising of 10,440,327 shares with a face value of one hryvnia each, will be 14.00 million hryvnias. The authorized capital of Chernihivoblenergo is 29.829 million hryvnias.


The winner will have to pay off 5 million hryvnias of Chernihivoblenergo's debts and inject 5 million hryvnias into the company's cash flow. The buyer will also have to invest 17.76 million hryvnias in upgrading power lines.


The starting price for a 45 percent stake in AT Lisichansknaftoprodukt, comprising 2.187 million shares with a value of 0.05 hryvnias each, is 1.97 million hryvnias.


The winner must invest four million hryvnias into the operation and inject 500,000 hryvnias into the company's cash flow.